Defiance Files for Sovereign AI ETF With Private Market Exposure

Defiance has filed to launch a passively managed ETF tracking the INDXX Sovereign AI Index, targeting companies enabling governments and regulated institutions to deploy AI through domestically controlled infrastructure, data and technology. The index selects up to 30 equally weighted companies across five segments: defense AI, critical infrastructure, data infrastructure, cloud infrastructure, and AI cybersecurity and governance. Eligible companies must generate at least 50% of revenue from qualifying activities and have a minimum market capitalization of $1 billion. The index rebalances semiannually. Notably, the Defiance Sovereign AI ETF may allocate up to 15% of net assets to private sovereign AI companies, including pre-IPO businesses accessed through special purpose vehicles, although initial allocations are expected to remain around 5% or less. The fund is expected to have significant technology and software exposure.